Labour’s building targets
The incumbent government has said it plans to build 1.5m new homes within 5 years, with priority given to first-time buyers. This will lead to the creation of ‘new towns’, with much of the building taking place on brownfield/greenfield sites and urban areas. To achieve this, Labour will aim to streamline planning and speed up the approval of new homes.
The project will involve working with private sector companies, housing associations, and local authorities, requiring plenty of joined-up thinking – project managers will need to be at the forefront of operations, with efficient digital tools to help organise workflows.
These digital tools can aid in the timely delivery of project targets through accurate resource allocation, intelligent scheduling capabilities, and clear supply chain visibility. They should also streamline risk and governance, and help reduce maverick spend.
Looking at legislation
The recent scrapping of the Renter’s Reform Bill – years in the making – has been met with surprise by many in the housing sector. However, Labour has promised to rapidly dismantle Section 21 of the Housing Act 1998 – legislation that gives landlords the right to evict tenants without reason.
The findings of a recent Labour-commissioned review suggest the party will build on the stipulations of the Decent Homes Standard, extending the rights of both social and private renters. This is likely to include a mandatory National Landlords Register and enhanced rent controls.
Labour says its 5-year building plan will require partnership with private developers. This will be carried out under the proviso that at least 50% of new homes are deemed affordable. The party will increase pressure on developers to deliver on their commitments by making challenges more difficult.
Keeping an eye on procurement
New procurement rules, due to ‘go live’ at the end of October, mean that public contracting authorities will have to adhere to strict obligations surrounding transparency notices and supplier KPIs.
The Act will mean big changes for housing providers; procurement leads will need to be given a seat at the top table and become central to decision making. For most organisations, this will require a significant cultural shift.
While designed to simplify procurement, the Act will nonetheless result in additional bureaucracy. As such, housing teams will need to look towards efficient digital systems that ensure data is centralised, easily accessible, and safe.
What are the stumbling blocks?
To successfully achieve its building aims, the government has said it will need to build on the greenbelt. And while the party promises it will not build on ‘genuine nature spots’, its plans will no doubt be of concern to environmental campaigners, local residents, and local authorities looking to stick to their Net Zero commitments – Labour may face challenges here.
Cost, of course, is another potential stumbling block – construction costs have skyrocketed recently, and the first quarter of 2024 saw a 13% fall in the number of new builds. Although house prices have started to show minimal growth, persuading private developers to build en masse may prove difficult.
Given the scale of Labour’s plans, local authorities, housing associations, and private developers may not have the capacity for effective delivery. Already stretched and under resourced (attracting enough skilled construction workers is a particular problem), the housing industry may not be able to keep up – particularly without the right digital systems in place.
Summary
Whether the government can pull off its house building plans as promised remains to be seen. Cost is certainly a big issue, and environmental sustainability cannot be ignored. At the same time, legal challenges could halt progress – particularly when it comes to building on the greenbelt.
Along with these challenges, housing providers must adapt to recent legislative changes, and begin to prepare for the provisions of the Procurement Act 2023, due to go live in October. This will require housing providers to ensure they have optimised digital systems in place that drive efficiencies, foster organisational change, and keep data protected.
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